In today’s epoch of digitalisation, where almost everything has an online facet, banking is no exception. Though the transition has been gradual, stark changes have been observed and appreciated globally. Today’s technology enables us to sit back at home and almost certainly manage all our finances through a single click.
Among the various digital financial services available, the two most commonly used are NEFT and RTGS. This article will shed light on NEFT vs RTGS in 2024; exploring their updated features, changes, and the introduction of the Bajaj Pay UPI.
NEFT: National Electronic Funds Transfer
NEFT, the acronym for National Electronic Funds Transfer, is an Indian system of electronic transfer of money from one bank to another. It operates on a deferred settlement basis resulting in settlements taking place in hourly batches. The time required for the completion of the transaction is generally a few hours.
RTGS: Real-Time Gross Settlement
On the other hand, RTGS stands for Real-Time Gross Settlement. As the name implies, RTGS conducts instant processing of fund transfers on an order by order basis without any waiting period. It is essentially used for large-value transactions, and the minimum amount is set at Rs 2 lakhs.
NEFT Enhancements
In 2024, both NEFT and RTGS have experienced noteworthy enhancements aligning with the ever-evolving technological advancements and user requirements. The Reserve Bank of India has made NEFT available 24×7, making it much more convenient for users. Individuals can now initiate fund transfers anytime without worrying about bank working hours or holidays.
RTGS Enhancements
RTGS, traditionally used for high-value transactions, has loosened its regulations. The systemic change has reduced the minimum limit for transactions in 2024, leading to a surge in its usage. Furthermore, the transfer speed has seen significant improvement with improved technology and stronger internet networks, making the transfers almost instantaneous.
Security and Cost
As for safety upgrades, both NEFT and RTGS transactions are more secure, thanks to the implementation of advanced levels of encryption and two-factor authentication. Understanding what is NEFT is crucial for comprehending these improvements: NEFT (National Electronic Funds Transfer) ensures that money transfers are conducted with high security. These measures hinder any possible cyber fraud and guarantee users a safe and secure transaction.
Freedom from transaction charges is another noteworthy change in 2024. Both NEFT and RTGS are now free of cost irrespective of the transaction amount. This has been done to promote digital transactions and make online banking more user-friendly.
Bajaj Pay UPI: A New Era in Digital Payments
However, when it comes to embracing a digital future in terms of finances and transactions, one cannot ignore the role played by the Unified Payments Interface (UPI). One such platform on the rise in 2024 is Bajaj Pay UPI.
Bajaj Pay UPI is a unique platform that has been allowing users to make instant payment transfers directly between two bank accounts. In a market dominated by UPI interfaces such as Google Pay and PhonePe, Bajaj Pay UPI is carving a niche for itself with its unique features and unmatched security. This platform allows users to transfer money, pay bills, and make online purchases using a Virtual Payment Address (VPA) without entering additional bank details. This not only simplifies transactions but also adds an extra layer of security, making it a preferred choice for many.
Conclusion
Comparing NEFT vs RTGS in 2024 brings to light the commendable efforts made by the authorities to upgrade these systems. From increased accessibility and reduced transaction time to enhanced safety measures and cost-effectiveness, these changes reflect a promising future for digital banking in India. With ever-advancing technology and the rise of payment interfaces like Bajaj Pay UPI, one can only anticipate the future of digital banking to become more versatile, secure, and user-friendly.
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